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Bank of America expects IPOs in India to pick up within six months

Purohit expects mergers, acquisitions activity in India will continue to be strong, aided by consolidation in consumer facing industries such as financial services, consumer internet-based companies

Bank of America | IPOs | Merger and Acquisition

Baiju Kalesh | Bloomberg 

Photo: Bloomberg
Photo: Bloomberg

Corp. expects initial public offerings in will regain their recent momentum as soon as in the first quarter of next year, bolstered by the underlying strength of the market.

“I think have taken a breather but it will be probably three to six months away from coming back,” Debasish Purohit, co-head of investment banking at Bank of America, said in a Bloomberg Television interview on Wednesday.

Some of last year’s IPO activity has more recently given way to sales of secondary shares, which are quicker and give holders a chance to monetize their stakes, Purohit said.

India’s equity capital market activity is down about 40% this year, he said, outperforming a 70% slump across Asia.

Purohit expects mergers and acquisitions activity in will continue to be strong, aided by consolidation in consumer facing industries such as financial services and consumer internet-based companies.

“A large part of India’s M&A dealmaking activity will be inbound because there are sectors in India who are net capital importers,” said Purohit, who was elevated as the co-head of the unit in June.

Most of the inbound deals will be seen in energy transition, infrastructure, food and beverages and health care, he said, especially when global pharma majors tend to diversify away from the China supply chain or are making significant investments into India.

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First Published: Wed, September 21 2022. 23:04 IST